Gold Flat Ahead Of Consumer Price Data

Gold futures were flat Thursday morning ahead of data that is exptected to confirm U.S. consumer prices are on the rise.

Yesterday, the Labor Department said its producer price index for final demand rose by 0.3 percent in June after climbing by 0.5 percent in May. Economists had expected prices to edge up by 0.2 percent.

Chicago Fed President Charles Evans, considered a dovish policy maker compared to his colleagues, is now in favor of raising interest rates. He tells the WSJ: "The economy seems so strong it seems natural that businesses and consumers can live with" slightly higher rates."

Gold prices fell sharply yesterday. This morning, they are down $1 at $1243 an ounce, the lowest since July 2.

Overseas, German consumer prices climbed 2.1 percent year-over-year in June, just below the 2.2 percent rise in May, final data from Destatis revealed. That was in line with the flash estimate published on June 28.